PARRIS N. GLENDENING, Governor

Ch. 35

(D) INDIVIDUAL POLICY — EFFECTIVE DATE.

(1) AN INDIVIDUAL POLICY ISSUED UNDER THIS SECTION SHALL TAKE
EFFECT IMMEDIATELY AFTER THE TERMINATION OF COVERAGE UNDER THE
GROUP POLICY IF THE COVERED INDIVIDUAL:

(I) MAKES A TIMELY WRITTEN REQUEST FOR AN INDIVIDUAL

POLICY; AND

(II) PAYS THE FIRST PREMIUM FOR THE INDIVIDUAL POLICY.

(2) BY REGULATION THE COMMISSIONER SHALL ESTABLISH RULES TO
DETERMINE WHEN A WRITTEN REQUEST AND PAYMENT OF THE REQUIRED
PREMIUM ARE TIMELY.

(E) SAME — RENEWABILITY.

AN INDIVIDUAL POLICY ISSUED UNDER THIS SECTION SHALL BE GUARANTEED
RENEWABLE FOR THE TERM OR TO THE LIMITING AGE FOR WHICH BENEFITS
WOULD HAVE BEEN PROVIDED IF COVERAGE UNDER THE GROUP POLICY HAD NOT
TERMINATED.

(F) SAME — REQUIRED BENEFITS.

THE LEVEL OF BENEFITS UNDER AN INDIVIDUAL POLICY ISSUED UNDER THIS
SECTION SHALL EQUAL APPROXIMATELY THE DISABILITY BENEFITS THAT WOULD
HAVE BEEN PROVIDED IF COVERAGE UNDER THE GROUP POLICY HAD NOT
TERMINATED.

(G) SAME — PREMIUM.

(1) THE PREMIUM FOR AN INDIVIDUAL POLICY ISSUED UNDER THIS
SECTION SHALL BE DETERMINED IN ACCORDANCE WITH THE INSURER'S TABLE OF
PREMIUM RATES THAT IS APPLICABLE TO THE ATTAINED AGE AND CLASS OF RISK
OF THE COVERED INDIVIDUAL FOR THE TYPE AND AMOUNT OF INSURANCE
PROVIDED.

(2) THE INSURER SHALL RESERVE THE RIGHT TO CHANGE THE
PREMIUM ON ANY POLICY ANNIVERSARY SUBJECT TO APPROVAL BY THE
COMMISSIONER.

(H) NOTIFICATION OF CONVERSION PRIVILEGE.

THE COMMISSIONER MAY ESTABLISH REQUIREMENTS THAT GOVERN
NOTIFICATION BY THE INSURER OR GROUP POLICYHOLDER TO THE INDIVIDUAL
WHOSE COVERAGE UNDER THE GROUP POLICY IS BEING TERMINATED OF THE
RIGHT OF CONVERSION TO AN INDIVIDUAL POLICY.

(I) LIMITATION ON CONVERSION PRIVILEGE.

THE INSURER MAY LIMIT THE RIGHT OF CONVERSION TO INDIVIDUALS WHO
HAVE BEEN COVERED UNDER THE GROUP POLICY FOR AT LEAST 1 YEAR.

(J) GROUP POLICY ISSUED BEFORE JANUARY 1, 1984.

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